[JohnnyBB]

The government has confirmed that it is evaluating plans to put Channel 4 at the heart of a new public service broadcasting entity designed to compete with the BBC on quality.

The interim version of communication minister Lord Carter's Digital Britain report said the government is trying to "establish whether a long-term and sustainable second public service organisation providing competition for quality to the BBC can be defined and designed, drawing in part on Channel 4's assets and a re-cast remit".

The government will deliver its verdict in the final version of the report, which will be published in late spring. The interim report has made 22 recommendations, including that Channel 4 investigate partnerships with BBC Worldwide.

The interim report said that the proposed new entity " would be a body with public service at its heart, but one which is able to develop flexible and innovative partnerships with the wider private and public sector".

It added: "While it makes sense to begin by looking at public sector bodies - Channel 4 and BBC Worldwide - the Government is currently evaluating a range of options and organisational solutions for achieving such an outcome.

"Channel 4 would continue to be the broadcast licensee within such an entity. For the public the viewing experience would be the same or better than today, but as a sustainable part of a wider whole operating successfully across the whole range of digital devices and platforms.

"There is a range of issues that needs to be addressed in achieving such partnership, including the governance and accountability arrangements required for any new structure. We will return to this in the final report."

The report did not address suggestions that Channel 4 merge with Five to secure its financial future.